Long Term Care Insurance
Long Term Care (LTC) is the assistance you need when you can no longer care for yourself. People are living longer than ever before, but with longer life often comes the need for support in later years.
The fact is, about 70% of people over age 65 will need some kind of long term care services during their lifetimes, and 40% will need care in a nursing home.*
When you consider several other realities, Long Term Care Insurance can help you maintain your independence and relieve financial and caregiving pressure on your family:
- Traditional health insurance including Medicare and Medicaid do not cover long term care costs.
- Family members may not live close by to help provide care.
- Long term care can span years – and can be extremely expensive.
Long term care benefits a person in the event he or she suffers from a prolonged physical illness, a disability, or cognitive impairment. It is designed to help pay for assistance with daily living including bathing, dressing, eating, toileting, and taking medications over a period of months or years. It can pay for home health care, respite care, hospice care, adult daycare, assisted living facility, or nursing home services. This type of support is just not covered by Medicare or other types of insurance.
Because rates are based on age and health, it’s best to start shopping for a policy when you’re younger and healthy. The ages between late 40’s to mid-60’s often makes sense. You can buy a policy at 65 or even older but expect to pay considerably more. Plus, if you wait too long and develop health issues, you may not qualify. The cost of long term care is already more than most people can cover for any length of time – and these costs are projected to continue to rise significantly in the future.
Long Term Care Insurance charges a fixed premium* to protect against the risk of much larger out-of-pocket expenses in the future. Your cost (premium) depends on several factors including age, health, and family health history. You also have the flexibility to tailor your policy to meet your needs and budget.
Traditional plans, like the Federal Long Term Care Plan, cover long term care only. These plans provide the greatest stand-alone coverage, but they don’t offer other benefits. There are plans that combine long term care with other benefits like life insurance or an annuity. There are even shared or hybrid plans that solve the “Use it or Lose it” concern by allowing your money to be used for other purposes if you don’t require long term care.
GEBA Can Help You With the Protection You Need
You need to consider the different ways to structure and fund your long term care. As a GEBA member, you have access to long term care and financial planning experts. You can talk to them confidentially to figure out the best way to plan your future.
To schedule an appointment, call GEBA at (800) 826-1126 or email us.
If you are a Long Term Care policyholder who is being billed by the carrier, it is necessary to contact the carrier directly.